America’s Car-Mart, Inc. (NASDAQ: CRMT) (“we,” “Car-Mart” or the
“Company”), today reported financial results for the fourth quarter
and full year ended April 30, 2024.
Fourth Quarter Key Highlights (FY’24 Q4 vs.
FY’23 Q4, unless otherwise noted)
- Revenue was $364.7 million, down 5.8%
- Gross Margin improved to 35.5%, up 200 bps
- Total collections increased 5.0% to $187.2 million
- Favorable adjustment to allowance for credit loss to 25.32%,
down from 25.74%
- Net charge-offs as a % of average finance receivables were 7.3%
vs. 6.3%
- Interest expense increase of $4.9 million or 38.2%
- Diluted earnings per share $0.06 vs. $0.32
Full Year Key Highlights (FY’24 vs. FY’23,
unless otherwise noted)
- Revenue was $1.4 billion, down 0.5%
- Gross Margin increased to 34.7%, up 120 bps
- Total collections increased 9.2% to $688.9 million
- SG&A per average account was down 2.5%
- Interest expense increase of $27.0 million or 70.6%
- Loss per share $4.92 vs. $3.11 diluted earnings per share
- Significant progress on strategic initiatives – implementation
of Loan Origination System (LOS), initiation of Cox partnership,
deployment of acquisition strategy
President and CEO Commentary, Doug Campbell
“Our sales results improved sequentially but
fell short of our internal expectations for the quarter. I am
encouraged by our disciplined management on several fronts,
including SG&A, total cash collected from customers, improved
down payments, and stronger gross margins -- all of which were
improved over the prior year quarter. The LOS and its improved
underwriting capability continues to deliver superior results when
compared to our legacy system and aided in a reduction in our
provision for credit loss. We are also thrilled about our most
recent acquisition and welcome our new associates from Texas
Auto Center to the Car-Mart family. This transaction closed June 3,
2024, and is the largest acquisition to date for our company.
Despite these positives, the persistent inflationary environment
driven by macro trends disproportionately impacted our customer
base. In the upcoming year we are confident in our multi-pronged
approach to lower overall vehicle costs and improve affordability
for our consumers.”
Fourth Quarter and Fiscal Year 2024 Key Operating
Metrics |
|
Dollars in thousands, except per share data.
Dollar and percentage changes may not recalculate due to rounding.
Charts may not be to scale.
Note: Discussions in each section provide information
for the fourth quarter of fiscal year 2024 compared to the fourth
quarter of fiscal year 2023, unless otherwise noted.
Fourth Quarter Business Review |
|
TOTAL REVENUE – A 5.8% drop in
revenue was primarily driven by the decrease in retail units sold.
A portion of the decline in revenue was offset by an increased
average retail sales price and increased interest income.
SALES – Sales for the quarter
were 15,251 units vs. 17,655 units, down 13.6%. It is important to
note that we saw a rebound in volumes as the third quarter was
down 19.6% in unit volumes sold. We continue to iterate on our new
origination platform and our marketing plan to efficiently produce
volumes at an appropriate risk.
GROSS PROFIT – Gross profit
margin as a percentage of sales was 35.5%, or $7,132 per unit,
compared to 33.5% or $6,354 per unit. This 12.2% increase resulted
from continued execution on pricing discipline, improvements in the
vehicle repair expenses, and optimization of transportation
costs.
NET CHARGE-OFFS – Net
charge-offs as a percentage of average finance receivables were
7.3% compared to 6.3%. As a reference, the quarterly performance of
net charge-offs for the five-year period preceding the pandemic
period ranged from 5.9% - 8.7%, signaling a return to more normal
pre-pandemic levels. On a relative basis, we experienced continued
increases in both the frequency and severity of losses, with the
frequency increase accounting for approximately 58% of the
increase.
ALLOWANCE FOR CREDIT LOSSES
– The allowance for credit loss as a percentage of
finance receivables, net of deferred revenue and pending accident
protection plan claims, decreased from 25.74% at January 31, 2024,
to 25.32% at April 30, 2024, providing a 42 bps benefit to the
provision for credit losses. The adjustment was primarily driven by
the improved experience of contracts underwritten in our new
system. As of April 30, 2024, approximately 20% of the portfolio
balance originated from our new LOS system. Delinquencies (accounts
over 30 days past due) improved by 50 bps to 3.1% of finance
receivables as of April 30, 2024, and sequentially by 20 bps from
3.3% of finance receivables as of January 31, 2024.
UNDERWRITING – Average
down payments improved to 6.5%, 40 bps over the prior year fourth
quarter and 140 bps sequentially. The average originating term for
the quarter was 44.0 months, up from the prior year’s 43.5 months
and the third quarter’s 43.3 months. The average retail sales price
increased by $1,123 or 6.2%, with a 0.5 month increase in the term.
Stronger deal structures improved projected cash-on-cash returns to
69.5% for the first full quarter of LOS originations.
SG&A EXPENSE
– SG&A expense was $44.5 million compared to $45.8
million. Continued focus on SG&A and actions taken during the
third quarter assisted in bringing SG&A per average account
down 4.0%, despite the impact of $1.3 million in stock
compensation. These efforts resulted in the lowest percentage
change in annual SG&A in over five years at just a 1.5%
increase.
LEVERAGE & LIQUIDITY
– Debt to finance receivable and debt, net of cash to finance
receivables (non-GAAP)1 were 52.6% and 46.0%, compared to 46.5% and
41.5%, respectively, at the end of the prior year’s fourth quarter
(sequentially 51.8% and 45.2%, respectively). During the fiscal
year, we grew finance receivables by $62.0 million, decreased
inventory by $1.8 million, and purchased investment and fixed
assets of $11.0 million with a $89.4 million increase in debt, net
of cash. Available borrowings under our revolving credit facility
were $73.4 million.
ACQUISTIONS & DISPOSITIONS
– Subsequent to the fiscal year end the Company
announced and closed on the acquisition of Texas Auto Center (TAC),
operating two dealerships in Austin and San Marcos, Texas. TAC is a
nearly 30-year-old company owned by Bob and Erika Blankenship. This
acquisition is expected to deliver exceptional outcomes for
customers, associates, and shareholders. TAC’s high-performance
culture, customer focus, and values align with Car-Mart. The
structure will be consistent with prior transactions whereby the
Company will not acquire credit risk, and the sellers may receive a
performance-based earn-out in the future.
We also have several stores which we are
performance managing by restricting capital. We expect that
restricting investments to these underperforming locations will
rebalance our portfolio, allowing us to prioritize higher-return
locations and redeploy cash more effectively. As mentioned before,
we will be more agile in deploying strategies that provide the best
return for our shareholders. Three dealerships were closed during
the fiscal year.
1 Calculation of this non-GAAP financial measure
and a reconciliation to the most directly comparable GAAP measure
are included in the tables accompanying this release
ANNUAL CASH-ON-CASH RETURNS –
Cash-on-Cash (CoC) returns continue to be very favorable. During
the quarter, the frequency of loss on loans originated in fiscal
years 2021 through 2023 were higher than prior projections;
however, they represent a smaller balance of our portfolio. In
contrast, the originations generated during the fourth quarter of
fiscal year 2024 had a combination of improved cash down and
expected lower loss rates from LOS originations, which drove a 160
bps improvement in the expected CoC returns for loans originated in
the fiscal year 2024.
Cash-on-Cash Returns1 |
Loan Origination Year |
Prior Projected |
Current Projected/Actual |
Variance |
% of A/R Remaining |
FY2017 |
* |
61.0% |
* |
0.0% |
FY2018 |
* |
67.6% |
* |
0.0% |
FY2019 |
* |
70.0% |
* |
0.1% |
FY2020 |
* |
73.5% |
* |
0.3% |
FY2021 |
73.6% |
72.8% |
-0.8% |
3.2% |
FY2022 |
58.3% |
56.6% |
-1.7% |
15.2% |
FY2023 |
55.0% |
52.5% |
-2.5% |
35.2% |
FY2024 |
61.3% |
62.9% |
1.6% |
74.0% |
|
|
|
|
|
* 2017 - 2020 Pools' Current Projection reflects actual
cash-on-cash returns |
1“Cash-on-cash returns” represent the return on cash invested by
the Company in the vehicle finance loans the Company originates and
is calculated with respect to a pool of loans (or finance
receivables) by dividing total “cash in” less “cash out” by total
“cash out” with respect to such pool. “Cash in” represents the
total cash the Company expects to collect on the pool of finance
receivables, including credit losses. This includes down-payments,
principal and interest collected (including special and seasonal
payments) and the fair market value of repossessed vehicles, if
applicable. “Cash out” includes purchase price paid by the Company
to acquire the vehicle (including reconditioning and transportation
costs), and all other post-sale expenses as well as expenses
related to our ancillary products. The calculation assumes
estimates on expected credit losses net of fair market value of
repossessed vehicles and the related timing of such losses as well
as post sales repair expenses and special payments. The Company
evaluates and updates expected credit losses quarterly. The credit
quality of each pool is monitored and compared to prior and initial
forecasts and is reflected in our on-going internal cash-on-cash
projections.
|
|
Three Months
Ended |
|
|
|
April
30, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
Operating Data: |
|
|
|
|
|
|
Retail units sold |
|
15,251 |
|
|
|
17,655 |
|
|
(13.6 |
)% |
|
Average
number of stores in operation |
|
154 |
|
|
|
156 |
|
|
(1.3 |
) |
|
Average
retail units sold per store per month |
|
33.0 |
|
|
|
37.7 |
|
|
(12.5 |
) |
|
Average
retail sales price |
$ |
19,256 |
|
|
$ |
18,133 |
|
|
6.2 |
|
|
Total gross
profit per retail unit sold |
$ |
7,132 |
|
|
$ |
6,354 |
|
|
12.2 |
|
|
Total gross
profit percentage |
|
35.5 |
% |
|
|
33.5 |
% |
|
|
|
Same store
revenue growth |
|
(5.3 |
)% |
|
|
12.2 |
% |
|
|
|
Net
charge-offs as a percent of average finance receivables |
|
7.3 |
% |
|
|
6.3 |
% |
|
|
|
Total
collected (principal, interest and late fees) |
$ |
187,214 |
|
|
$ |
178,316 |
|
|
5.0 |
|
|
Average
total collected per active customer per month |
$ |
607 |
|
|
$ |
586 |
|
|
3.6 |
|
|
Average
percentage of finance receivables-current (excl. 1-2 day) |
|
80.1 |
% |
|
|
80.6 |
% |
|
|
|
Average
down-payment percentage |
|
6.5 |
% |
|
|
6.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
Years
Ended |
|
|
|
April
30, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
Operating Data: |
|
|
|
|
|
|
Retail units sold |
|
57,989 |
|
|
|
63,584 |
|
|
(8.8 |
)% |
|
Average
number of stores in operation |
|
154 |
|
|
|
155 |
|
|
(0.6 |
) |
|
Average
retail units sold per store per month |
|
31.4 |
|
|
|
34.2 |
|
|
(8.2 |
) |
|
Average
retail sales price |
$ |
19,113 |
|
|
$ |
18,080 |
|
|
5.7 |
|
|
Total gross
profit per retail unit sold |
$ |
6,937 |
|
|
$ |
6,344 |
|
|
9.3 |
|
|
Total gross
profit percentage |
|
34.7 |
% |
|
|
33.5 |
% |
|
|
|
Same store
revenue growth |
|
(1.0 |
)% |
|
|
16.7 |
% |
|
|
|
Net
charge-offs as a percent of average finance receivables |
|
27.2 |
% |
|
|
23.3 |
% |
|
|
|
Total
collected (principal, interest and late fees) |
$ |
688,907 |
|
|
$ |
630,678 |
|
|
9.2 |
|
|
Average
total collected per active customer per month |
$ |
554 |
|
|
$ |
534 |
|
|
3.7 |
|
|
Average
percentage of finance receivables-current (excl. 1-2 day) |
|
80.3 |
% |
|
|
80.3 |
% |
|
|
|
Average
down-payment percentage |
|
5.4 |
% |
|
|
5.4 |
% |
|
|
|
|
|
|
|
|
|
Period End Data: |
|
|
|
|
|
|
Stores
open |
|
154 |
|
|
|
156 |
|
|
(1.3 |
)% |
|
Accounts
over 30 days past due |
|
3.1 |
% |
|
|
3.6 |
% |
|
|
|
Active
customer count |
|
102,252 |
|
|
|
102,305 |
|
|
(0.1 |
) |
|
Principal
balance of finance receivables |
$ |
1,435,388 |
|
|
$ |
1,373,372 |
|
|
4.5 |
|
|
Weighted
average total contract term |
|
47.9 |
|
|
|
46.3 |
|
|
3.5 |
|
|
|
|
|
|
|
|
Conference Call and Webcast |
|
The Company will hold a conference call to
discuss its quarterly results on Tuesday, June 18, 2024, at 9 am
ET. Participants may access the conference call via webcast using
this link: Webcast Link. To participate via
telephone, please register in advance using
this Registration Link. Upon registration,
all telephone participants will receive a one-time confirmation
email detailing how to join the conference call, including the
dial-in number along with a unique PIN that can be used to access
the call. All participants are encouraged to dial in 10 minutes
prior to the start time. A replay and transcript of the conference
call and webcast will be available on-demand for 12 months.
About America's Car-Mart, Inc. |
|
America’s Car-Mart, Inc. (the
“Company”) operates automotive dealerships in 12 states and is one
of the largest publicly held automotive retailers in the
United States focused exclusively on the “Integrated Auto
Sales and Finance” segment of the used car market. The Company
emphasizes superior customer service and the building of strong
personal relationships with its customers. The Company operates its
dealerships primarily in smaller cities throughout the
South-Central United States, selling quality used vehicles and
providing financing for substantially all of its customers. For
more information about America’s Car-Mart, including investor
presentations, please visit our website
at www.car-mart.com.
Non-GAAP Financial Measures |
|
This press release contains financial
information determined by methods other than in accordance with
generally accepted accounting principles (GAAP). We present
total debt, net of total cash, to finance receivables, a non-GAAP
measure, as a supplemental measure of our performance. We believe
total debt, net of total cash, to finance receivables is a useful
measure to monitor leverage and evaluate balance sheet risk. This
measure should not be considered in isolation or as a substitute
for reported GAAP results because it may include or exclude certain
items as compared to similar GAAP-based measures, and such measures
may not be comparable to similarly-titled measures reported by
other companies. We strongly encourage investors to review our
consolidated financial statements included in publicly filed
reports in their entirety and not rely solely on any one, single
financial measure or communication. The most directly comparable
GAAP financial measure, as well as a reconciliation to the
comparable GAAP financial measure, for non-GAAP financial measures
are presented in the tables of this release.
Forward-Looking Statements |
|
This news release contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements address the
Company’s future objectives, plans and goals, as well as the
Company’s intent, beliefs and current expectations and projections
regarding future operating performance and can generally be
identified by words such as “may,” “will,” “should,” “could,”
“expect,” “anticipate,” “intend,” “plan,” “project,”
“foresee,” and other similar words or phrases. Specific events
addressed by these forward-looking statements may include, but are
not limited to:
-
operational infrastructure investments;
-
same dealership sales and revenue growth;
-
customer growth and engagement;
-
gross profit percentages;
-
gross profit per retail unit sold;
-
business acquisitions;
-
inventory acquisition, reconditioning, transportation, and
remarketing
-
technological investments and initiatives;
-
future revenue growth;
-
receivables growth as related to revenue growth;
-
new dealership openings;
-
performance of new dealerships;
-
interest rates;
-
future credit losses;
-
the Company’s collection results, including but not limited to
collections during income tax refund periods;
-
cash-on-cash returns from the collection of loans originated by the
Company
-
seasonality; and
- the Company’s business, operating
and growth strategies and expectations.
These forward-looking statements are based on
the Company’s current estimates and assumptions and involve various
risks and uncertainties. As a result, you are cautioned that these
forward-looking statements are not guarantees of future
performance, and that actual results could differ materially from
those projected in these forward-looking statements. Factors that
may cause actual results to differ materially from the Company’s
projections include, but are not limited to:
-
general economic conditions in the markets in which the Company
operates, including but not limited to fluctuations in gas prices,
grocery prices and employment levels and inflationary pressure on
operating costs;
-
the availability of quality used vehicles at prices that will be
affordable to our customers, including the impacts of changes in
new vehicle production and sales;
-
the ability to leverage the Cox Automotive services agreement to
perform reconditioning and improve vehicle quality to reduce the
average vehicle cost, improve gross margins, reduce credit loss,
and enhance cash flow;
-
the availability of credit facilities and access to capital through
securitization financings or other sources on terms acceptable to
us, and any increase in the cost of capital, to support the
Company’s business;
-
the Company’s ability to underwrite and collect its contracts
effectively, including whether anticipated benefits from the
Company’s recently implemented loan origination system are achieved
as expected or at all;
-
competition;
-
dependence on existing management;
-
ability to attract, develop, and retain qualified general
managers;
-
changes in consumer finance laws or regulations, including but not
limited to rules and regulations that have recently been enacted or
could be enacted by federal and state governments;
-
the ability to keep pace with technological advances and changes in
consumer behavior affecting our business;
-
security breaches, cyber-attacks, or fraudulent activity;
-
the ability to identify and obtain favorable locations for new or
relocated dealerships at reasonable cost;
-
the ability to successfully identify, complete and integrate new
acquisitions;
-
the occurrence and impact of any adverse weather events or other
natural disasters affecting the Company’s dealerships or customers;
and
- potential business and economic
disruptions and uncertainty that may result from any future public
health crises and any efforts to mitigate the financial impact and
health risks associated with such developments.
Additionally, risks and uncertainties that may
affect future results include those described from time to time in
the Company’s SEC filings. The Company undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the dates on
which they are made.
Vickie Judy,
CFO479-464-9944Investor_relations@car-mart.com
America’s
Car-MartConsolidated Results of
Operations |
|
(Amounts in thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of Sales |
|
|
|
|
|
|
Three Months
Ended |
|
|
|
Three Months
Ended |
|
|
|
|
|
|
April 30, |
|
|
|
April 30, |
|
|
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
2024 |
|
2023 |
|
Statements of Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales(1) |
|
$ |
306,628 |
|
|
$ |
334,422 |
|
|
(8.3 |
)% |
|
|
100.0 |
% |
|
100.0 |
% |
|
|
Interest income |
|
|
58,045 |
|
|
|
52,528 |
|
|
10.5 |
|
|
|
18.9 |
|
|
15.7 |
|
|
|
|
|
Total(1) |
|
|
364,673 |
|
|
|
386,950 |
|
|
(5.8 |
) |
|
|
118.9 |
|
|
115.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales(1) |
|
|
197,854 |
|
|
|
222,242 |
|
|
(11.0 |
) |
|
|
64.5 |
|
|
66.5 |
|
|
|
Selling, general and administrative |
|
44,526 |
|
|
|
45,814 |
|
|
(2.8 |
) |
|
|
14.5 |
|
|
13.7 |
|
|
|
Provision for credit losses |
|
|
102,106 |
|
|
|
102,141 |
|
|
(0.0 |
) |
|
|
33.3 |
|
|
30.5 |
|
|
|
Interest expense |
|
|
17,761 |
|
|
|
12,852 |
|
|
38.2 |
|
|
|
5.8 |
|
|
3.8 |
|
|
|
Depreciation and amortization |
|
1,770 |
|
|
|
1,605 |
|
|
10.3 |
|
|
|
0.6 |
|
|
0.5 |
|
|
|
Loss on disposal of property and equipment |
|
78 |
|
|
|
43 |
|
|
81.4 |
|
|
|
- |
|
|
- |
|
|
|
|
|
Total(1) |
|
|
364,095 |
|
|
|
384,697 |
|
|
(5.4 |
) |
|
|
118.7 |
|
|
115.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before taxes |
|
|
578 |
|
|
|
2,253 |
|
|
|
|
|
0.2 |
|
|
0.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
152 |
|
|
|
165 |
|
|
|
|
|
0.0 |
|
|
0.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
426 |
|
|
$ |
2,088 |
|
|
|
|
|
0.1 |
|
|
0.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on subsidiary preferred stock |
$ |
(10 |
) |
|
$ |
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common shareholders |
$ |
416 |
|
|
$ |
2,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.07 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.06 |
|
|
$ |
0.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
6,393,258 |
|
|
|
6,372,770 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
6,533,758 |
|
|
|
6,580,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Some items in the prior year financial statements were reclassified
to conform to the current presentation. Reclassification had no
effect on the prior year net income or shareholders equity. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
America’s
Car-MartConsolidated Results of
Operations |
|
(Amounts in thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
As a % of Sales |
|
|
|
|
|
Twelve Months
Ended |
|
|
|
|
|
Twelve Months
Ended |
|
|
|
|
|
April 30, |
|
|
|
|
April 30, |
|
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
2024 |
|
2023 |
|
Statements of Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales(1) |
$ |
1,160,798 |
|
|
$ |
1,204,194 |
|
|
(3.6 |
)% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
Interest income |
|
233,096 |
|
|
|
196,219 |
|
|
18.8 |
|
|
|
20.1 |
|
|
|
16.3 |
|
|
|
|
|
Total(1) |
|
1,393,894 |
|
|
|
1,400,413 |
|
|
(0.5 |
) |
|
|
120.1 |
|
|
|
116.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales(1) |
|
758,546 |
|
|
|
800,788 |
|
|
(5.3 |
) |
|
|
65.3 |
|
|
|
66.5 |
|
|
|
Selling, general and administrative |
|
179,421 |
|
|
|
176,696 |
|
|
1.5 |
|
|
|
15.5 |
|
|
|
14.7 |
|
|
|
Provision for credit losses |
|
423,406 |
|
|
|
352,860 |
|
|
20.0 |
|
|
|
36.5 |
|
|
|
29.3 |
|
|
|
Interest expense |
|
65,348 |
|
|
|
38,312 |
|
|
70.6 |
|
|
|
5.6 |
|
|
|
3.2 |
|
|
|
Depreciation and amortization |
|
6,871 |
|
|
|
5,602 |
|
|
22.7 |
|
|
|
0.6 |
|
|
|
0.5 |
|
|
|
Loss on disposal of property and equipment |
|
437 |
|
|
|
361 |
|
|
21.1 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Total(1) |
|
1,434,029 |
|
|
|
1,374,619 |
|
|
4.3 |
|
|
|
123.5 |
|
|
|
114.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before taxes |
|
(40,135 |
) |
|
|
25,794 |
|
|
|
|
|
(3.5 |
) |
|
|
2.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit) provision for income taxes |
|
(8,742 |
) |
|
|
5,362 |
|
|
|
|
|
(0.8 |
) |
|
|
0.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before taxes |
$ |
(31,393 |
) |
|
$ |
20,432 |
|
|
|
|
|
(2.7 |
) |
|
|
1.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on subsidiary preferred stock |
$ |
40 |
|
|
$ |
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) net
income attributable to common shareholders |
$ |
(31,433 |
) |
|
$ |
20,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(4.92 |
) |
|
$ |
3.20 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
$ |
- |
|
|
$ |
3.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
6,388,537 |
|
|
|
6,371,229 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
6,388,537 |
|
|
|
6,566,896 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Some items in the prior year financial statements were reclassified
to conform to the current presentation. Reclassification had no
effect on the prior year net income or shareholders equity. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
America’s
Car-MartCondensed Consolidated Balance Sheet and
Other Data |
|
(Amounts in thousands,
except per share data) |
|
|
|
April 30, |
|
April 30, |
|
April 30, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
5,522 |
|
|
$ |
9,796 |
|
|
$ |
6,916 |
|
Restricted cash from collections on auto finance receivables |
$ |
88,925 |
|
|
$ |
58,238 |
|
|
$ |
35,671 |
|
Finance receivables, net(2) |
$ |
1,098,591 |
|
|
$ |
1,063,460 |
|
|
$ |
856,114 |
(1) |
Inventory |
$ |
107,470 |
|
|
$ |
109,290 |
|
|
$ |
115,302 |
|
Total assets(2) |
$ |
1,477,644 |
|
|
$ |
1,414,737 |
|
|
$ |
1,149,935 |
(1) |
Revolving lines of credit, net |
$ |
200,819 |
|
|
$ |
167,231 |
|
|
$ |
44,670 |
|
Non-recourse notes payable, net |
$ |
553,629 |
|
|
$ |
471,367 |
|
|
$ |
395,986 |
|
Treasury stock |
$ |
297,786 |
|
|
$ |
297,421 |
|
|
$ |
292,225 |
|
Total equity |
$ |
470,750 |
|
|
$ |
498,547 |
|
|
$ |
476,534 |
(1) |
Shares outstanding |
|
6,394,675 |
|
|
|
6,373,404 |
|
|
|
6,371,977 |
|
Book value per outstanding share |
$ |
73.68 |
|
|
$ |
78.29 |
|
|
$ |
74.86 |
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance as % of principal balance net of deferred revenue |
|
25.32 |
% |
|
|
23.91 |
% |
|
|
23.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in allowance for credit losses: |
|
|
|
|
|
|
|
|
Years Ended |
|
|
|
|
|
April 30, |
|
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
Balance at beginning of period |
$ |
299,608 |
|
|
$ |
237,823 |
|
|
|
|
Provision for credit losses |
|
423,406 |
|
|
|
352,860 |
|
|
|
|
Charge-offs, net of collateral recovered |
|
(391,754 |
) |
|
|
(291,075 |
) |
|
|
|
|
Balance at
end of period |
$ |
331,260 |
|
|
$ |
299,608 |
|
|
|
|
|
|
|
|
|
|
|
(1) |
Subsequent to the issuance of our financial statements for the
period ended April 30, 2022, certain immaterial errors were
identified and have been corrected in our historical information
related to the classification of deferred revenue of ancillary
products at the time an account is charged off and the calculation
for allowance for credit losses. The amount of deferred revenue
related to ancillary products for a customer account that is
charged off has historically been recognized as sales revenue at
the time of charge-off because the earnings stream for the deferred
revenue is completed at the time of charge-off. It was determined
that this amount should more appropriately be recorded as a
reduction to customer accounts receivable at the time of
charge-off, thus reducing the amounts historically reported in
sales revenue, net charge-offs, the provision for credit losses and
the allowance for credit losses. As a result, certain amounts for
sales revenue, provision for credit losses, charge-offs, net of
collateral recovered, and the allowance for credit losses have been
revised from the amounts previously reported to correct these
errors. The impact of these adjustments resulted in a cumulative
decrease in the allowance for credit losses of $9.4 million as of
April 30, 2022. Management has evaluated the materiality of these
corrections to its prior period financial statements from a
quantitative and qualitative perspective and has concluded that
this change was not material to any prior annual or interim
period. |
|
|
(2) |
Some items in the prior year
financial statements were reclassified to conform to the current
presentation. Reclassification had no effect on the prior year net
income or shareholders equity. |
|
|
America’s
Car-MartCondensed Consolidated Statements of Cash
Flows |
|
(Amounts in
thousands) |
|
|
|
Years Ended |
|
|
|
April 30, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
Operating activities: |
|
|
|
|
|
|
|
|
Net income |
$ |
(31,393 |
) |
|
$ |
20,432 |
|
|
Provision for credit losses |
|
423,406 |
|
|
|
352,860 |
|
|
Losses on claims for accident protection plan |
|
34,504 |
|
|
|
25,107 |
|
|
Depreciation and amortization |
|
6,871 |
|
|
|
5,602 |
|
|
Finance receivable originations |
|
(1,079,946 |
) |
|
|
(1,161,132 |
) |
|
Finance receivable collections |
|
455,828 |
|
|
|
434,458 |
|
|
Inventory |
|
139,186 |
|
|
|
133,046 |
|
|
Deferred accident protection plan revenue |
|
(1,229 |
) |
|
|
17,150 |
|
|
Deferred service contract revenue |
|
1,540 |
|
|
|
24,542 |
|
|
Income taxes, net |
|
(15,206 |
) |
|
|
(676 |
) |
|
Other |
|
(7,459 |
) |
|
|
12,883 |
|
|
|
Net cash
used in operating activities |
|
(73,898 |
) |
|
|
(135,728 |
) |
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
Purchase of investments |
|
(4,815 |
) |
|
|
(5,549 |
) |
|
Purchase of property and equipment and other |
|
(5,830 |
) |
|
|
(22,022 |
) |
|
|
Net cash
used in investing activities |
|
(10,645 |
) |
|
|
(27,571 |
) |
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
Change in revolving credit facility, net |
|
33,227 |
|
|
|
121,843 |
|
|
Payments on non-recourse notes payable |
|
(526,959 |
) |
|
|
(327,276 |
) |
|
Change in cash overdrafts |
|
823 |
|
|
|
- |
|
|
Issuances of non-recourse notes payable |
|
610,340 |
|
|
|
400,176 |
|
|
Debt issuance costs |
|
(5,897 |
) |
|
|
(2,263 |
) |
|
Purchase of common stock |
|
(365 |
) |
|
|
(5,196 |
) |
|
Dividend payments |
|
(40 |
) |
|
|
(40 |
) |
|
Exercise of stock options and issuance of common stock |
|
(173 |
) |
|
|
1,502 |
|
|
|
Net cash
provided by financing activities |
|
110,956 |
|
|
|
188,746 |
|
|
|
|
|
|
|
|
|
|
|
Increase in cash, cash equivalents, and restricted cash |
$ |
26,413 |
|
|
$ |
25,447 |
|
|
|
|
|
|
|
|
|
|
|
America’s
Car-MartReconciliation of Non-GAAP Financial
Measures |
|
(Amounts in
thousands) |
Calculation of Debt, Net of Total Cash, to Finance
Receivables: |
|
|
|
|
|
|
April 30, 2024 |
|
April 30, 2023 |
|
Debt: |
|
|
|
|
|
Revolving lines of credit, net |
$ |
200,819 |
|
|
$ |
167,231 |
|
|
|
Non-recourse
notes payable, net |
|
553,629 |
|
|
|
471,367 |
|
|
Total debt |
$ |
754,448 |
|
|
$ |
638,598 |
|
|
|
|
|
|
|
|
Cash: |
|
|
|
|
|
Cash and
cash equivalents |
$ |
5,522 |
|
|
$ |
9,796 |
|
|
|
Restricted
cash from collections on auto finance receivables |
|
88,925 |
|
|
|
58,238 |
|
|
Total cash, cash equivalents, and restricted cash |
$ |
94,447 |
|
|
$ |
68,034 |
|
|
|
|
|
|
|
|
Debt, net of total cash |
$ |
660,001 |
|
|
$ |
570,564 |
|
|
|
|
|
|
|
|
Principal balance of finance receivables |
$ |
1,435,388 |
|
|
$ |
1,373,372 |
|
|
|
|
|
|
|
|
Ratio of debt to finance receivables |
|
52.6 |
% |
|
|
46.5 |
% |
|
Ratio of debt, net of total cash, to finance receivables |
|
46.0 |
% |
|
|
41.5 |
% |
|
|
|
|
|
|
A photo of the chart covering Fourth Quarter and Fiscal Year
2024 Key Operating Metrics is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/f8a8b947-7d82-46ac-9851-993ab5b8550a
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